$FRA (-1,52%) is paying a dividend of € 1.00 per share for the first time since the pandemic. However, I find the new dividend policy even more exciting: as soon as net debt/EBITDA falls below 5.0x, 60-80% of profits will be distributed in future.
Following the completion of the major investment projects in Frankfurt and Lima, the free cash flow is already positive again and the focus is now clearly on reducing debt. If this path proves successful, this could $FRA (-1,52%) develop into a much more attractive dividend stock in the long term. Of course, the high level of debt remains a risk and the aviation industry is highly cyclical. Nevertheless, I find the combination of growing passenger volumes, falling investment requirements and a much more shareholder-friendly dividend policy very exciting.
Here is my question to the community: Am I missing something here or have we possibly $FRA (-1,52%) possibly a dividend story that has not yet been fully priced in?
~ No investment advice ~
